With a long leasehold premises in West Kensington, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Anyone in West Kensington with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has below 80 years left, under the relevant Act the landlord is entitled to calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in West Kensington,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with West Kensington valuers.
Last year Freddie, started to get near to the 80-year mark with the lease on his purpose- built apartment in West Kensington. In buying his flat two decades ago, the length of the lease was of no interest. Fortunately, he recognised he needed to take steps soon on Extending the lease. Freddie extended the lease just under the wire last May. Freddie and the landlord subsequently settled on a premium of £5,000 . If the lease had slipped lower than 80 years, the price would have increased by at least £900.
In 2010 we were approached by Mr and Mrs. H Cook who, having took over the lease of a garden apartment in West Kensington in November 1998. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Identical properties in West Kensington with an extended lease were valued around £300,000. The mid-range ground rent payable was £50 collected annually. The lease terminated in 2102. Taking into account 76 years unexpired we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
An example of a Lease Extension decision for a West Kensington residence is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case affected 1 flat. The unexpired term was 37.79 years.